Archive for the ‘strategy’ Category

A business plan is a necessity for any business. It is the result of painstaking thought and analysis, translated into a strategy and action.

Many advisers will tell you, quite rightly, that simply having a plan is not the path to success. They will tell you that to execute your strategy you will need to be continually planning, and taking operational or tactical decisions as you are sure your objective.

I’d like to suggest a different way of looking at this.

Everybody in business will tell you that they often encounter barriers, unexpected obstacles and difficulties on the path to their ultimate goal. Having a means to navigate through this environment of uncertainty becomes critical…

Navigation, as commonly understood, requires us to know where we want to go. Often in business however we are more like explorers who have no idea what we will find along the way, or even what it looks like when we get there. We are driven by a vision of the future, and often one we want to create. The most important question on such a journey is often “where are we?”

It’s the navigator’s job to answer that question.

Do you know where you are? Have you defined your purpose adequately, so that at any point on the journey you can determine if you are fit for purpose? Do you have the necessary information to assess the health of your business? Do you have the cash flow to keep going? Have you been filling in the details as you go so that you can test the continued validity of your business plan? Or are you pursuing the journey in the hope that the ship is in shape? Do you know where you are, or are you just assuming that you are where you want to be?

Think of your business journey as a journey of discovery. As a navigator does, you not only chart the course, that you continually scan the horizon and monitor the weather, and make adjustments to sail around the storms or to avoid the rocks and reefs, or to take advantage of favourable winds. Just as the navigator calls for course changes to avoid hazards, and then for re-corrections to come back on track, so too you can manage your businesses.

How good is your information, your understanding, your analysis of experience, and your scanning of the business horizon? Where are you getting your advice? Who do you turn to for assistance to navigate through the morass?

At any point in the journey that is your business life you must be able to answer the question “where are we?” and then assess whether you are still on track or off course. And then you can make the informed decisions necessary to keep the business viable. Execution is strategy. Navigation enables execution.

How do you grab the attention of your organisation and ensure that it does the right thing?

Many will say “by having a compelling vision”. It would be nice to have such a simple exclamation.

Having a compelling vision alone is insufficient for achievement as a leader. It must be complemented by communication and relationship building skills. Peters and Waterman, in “In Search of Excellence” (1982), considered that the principal factor which seems to deliver organisational success is the manager’s ability to deal with people.

Dealing with people in organisations starts with establishing a shared understanding of purpose. CEOs cannot develop a compelling vision or a strategy on their own. Yes, they need to have an agenda, and be results oriented (results get attention), but these cannot be developed in isolation.The reality is that the best CEOs are good at articulating the aspirations of their fellow organisational members. They are good at listening

and observing their own people, and turning those aspirations

into a compelling statement for the organisation.

Simply put, the best leaders set the direction by energising the

aspirations already in the organisation.

Articulating and communicating that vision turns it into a statement of shared purpose. The much sought after alignment of staff is more correctly described as a continuing process of orienting people towards the core objective, and to initiate actions that contribute to the achievement of purpose. And organisations become more effective as this shared understanding translates into another continuing process of always challenging what is being done – does it contribute to the purpose? Is it consistent with values? If so, is it the best way? What are the risks? Is the risk worth taking? And so on.. Rather than being seen as the action of a charismatic or transformational leader, thepurpose provides for a fundamental need in people.It is one in which they can find meaning and a sense of personal worth. It is a framework in which their contribution can be appreciated, and not just externally, but in greater levels of self-esteem and confidence. The effective managerial leader’s role then has been to capture and clarify the collective aspirations, to articulate these in a clear statement of purpose, and then to continually reiterate and reorient around that shared vision.

Two other factors are important, and can be deal breakers no matter how effective a leader has been in developing a sense of purpose. Those factors are trust and respect.

Trust is easy, and whilst it encompasses concepts such as integrity and fairness, in organisations it comes simply from making yourself and your position clear, and then honouring your commitments. That is, doing what you promise. This requires accountability and reliability, and implicitly requires you to think carefully about the commitments you are making, and recognising the impact that you are having on the organisation and its people. Max De Pree rightly talks of leadership as a serious meddling in the lives of others. Consider your commitments carefully, make them public and then honour them. Too often this becomes a stumbling block!

Respect, also, is easy. To gain the respect and confidence of staff, managerial leaders must be able to display competence in the work of the organisation, not just in “management expertise.” This is not an argument either for internal appointments, or for appointments of people who already understand your business. Many leaders entered jobs in which they have little content knowledge, and those who survive invariably go into a deep dive to understand the business and its nature. As they develop expertise, and display empathy with the joys and trials of the business, they win respect. Those who do not work to understand the business falter.

The essence of managerial leadership is to develop and demonstrate

the expertise and understanding that allows you to articulate a core purpose

for the organisation.

Translating that purpose into action is the essence of successful strategy

and that requires you to be clear about your intentions.

It is more than just “walk the talk” – it is about identifying the path

In a previous posts I talked about ideas having power if you contribute them for discussion and debate. Inc. Magazine has a nice article entitled why “idea” should be a verb written by Jeff Haden.Haden says: Every day, would-be entrepreneurs let hesitation and uncertainty stop them from acting on an idea. Fear of the unknown and fear of failure are what stopped me, and may be what stops you, too.To which I would add, it’s not just the entrepreneurs. The final sentence in the article says it all: You certainly won’t get it right all the time, but if you let “idea” stay a noun, you will always get it wrong.It reminds me of the Wayne Gretzky contribution: you miss 100% of the shots you don’t take.Haden’s advice: try trusting your analysis, your judgement, and even your instincts a little more.

Holding organisations together when all is going well is not an easy task. When all is going well you can inadvertently wander away from core business. Success bring a certain amount of freedom to explore, and can lead to complacency and slowness to respond to circumstances. Success is not often something for which we prepare. It is in that context that we can ask:

Why have so many seemingly successful companies failed in recent years? Why is there widespread anxiety over company/organisational leadership? Why are so many countries questioning the quality and effectiveness of their political leadership?

Is it a lack of preparedness? Is it an inability to cope with success? Have we even thought about what success is?

The following examines some issues relating to responsibility, ethics and power in leadership. I have drawn on some older material to help my reflection, and suggest that we seldom consider how we should prepare for success as a precursor to good performance. None of this is new, but has it been forgotten?

Leadership has been described as a serious meddling in the lives of others (De Pree, 1991:7). This implies that leadership embodies a responsibility of leaders for, or toward, those who are led.

Yet a common scenario in modern business (since the late 1980s) is:

… good, respected and successful leaders, men and women of intelligence, talent, and vision who suddenly self-destruct as they reach the apex of their careers.(Ludwig and Longenecker, 1993:266).

An Australian newspaper article from that time (Barker, 1995:14) reported that a concern for ethics in business is:

… a response to what is now called “ the excesses of the eighties” – the economic damage done to the nation and individuals by greedy, irresponsible and often corrupt business people who were feted as national heroes.

Ethics in management is a significant theme in the recent. But why is it that leaders get caught up in a downward spiral of unethical decisions?

Ludwig and Longenecker (1993:266-267) seek to:

… debunk the notion that ethical failure of our leaders is largely due to lack of principle and/or the tough competitive climate of the 80s and 90s. (Equally, we could say the same for the more recent past) Rather, we would like to suggest that many of the violations we have witnessed in recent years are the result of success and lack of preparedness in dealing with personal and organisational success.

Other evidence (Barker, 1995; LaBier ,1986) supports this contention that little attention is placed on preparing people to deal with the trials and dilemmas associated with success in modern society. As success is the goal of every leader (Ludwig and Longenecker, 1993:270) it is surprising that it does not rate more significance in management and leadership literature.

The biblical story of David and Bathsheba is used to outline four potential by-products of success:

·lose of strategic focus;

·privileged access;

·control of resources;

·inflated belief in personal ability to control outcomes.

Ludwig and Longenecker (1993:267-269) write that “… the good and successful King David of Israel, believing he could cover up his impropriety, took Bathsheba to his bed while her husband was off in battle.”

David is not where he is supposed to be (loss of strategic focus), he “delegated, then ignored what was happening”. David had time on his hands, and a viewing position atop the palace roof to view Bathsheba at bath (privileged access). David then manipulates the situations (controls resources, and tries to control outcomes) sleeps with Bathsheba who falls pregnant, brings her husband in from battle in the hope he will sleep with his wife and cover-up David’s impropriety, and eventually causes the husband to be killed. The manipulation is exposed. “David, in short, chose to do something he knew was clearly wrong in the firm belief that through his personal power, and control over power, he could cover up”.

When kept within reason, privileged access and control of resources are positive and justified requisites for success. Privileged access is “essential for comprehensive strategic vision” and control of resources is “necessary for the execution of strategy” (Ludwig and Longenecker, 1993:269). Loss of strategic focus and inflated belief in personal ability are essentially negative (see Table 3)

Table 3: Possible outcome experienced by successful leaders

Positive/Benefit

Negative/Disadvantage

Personal

Level

Privileged Access

Position

Influence

Status

Rewards/Perks

Recognition

Latitude

Associations

Access

Inflated Belief in Personal Ability

Emotionally Expansive

Unbalanced Personal Life

Inflated Ego

Isolation

Stress

Transference

Emptiness

Fear of Failure

Organisational

Level

Control of Resources

No Direct Supervision

Ability to Influence

Ability to set Agenda

Control over Decision Making

Loss of Strategic Focus

Organisation on Autopilot

Delegation without Supervision

Strategic Complacency

Neglect of Strategy

(Source: Ludwig and Longenecker, 1993: 270)

The benefits of success to the leader and the organisation are obvious. Less readily apparent is the personal “dark side” of success which revolves largely around three psychological issues outlined by Ludwig and Longenecker (1993:270-271). These are:

·Climbing the success ladder exposes leaders to negative attitudes and behaviours. There may not be apparent, but nonetheless come with the territory of successful leadership. Negatives that could be reinforced include unbalanced personal lives, a loss of touch with reality and an inflated sense of personal ability.

·Leaders may become emotionally expansive – “their appetite for success, thrills, gratification, and control becomes insatiable”. They can lose the ability to be satisfied. They can become personally isolated and lack intimacy with family and friends, losing a valuable source of personal balance. They “literally lose touch with reality”.

·Other factors include stress, fear of failure and the “emptiness syndrome” (“Is this all there is to success?”) An inflated sense of ego can lead to abrasiveness, close-mindedness and disrespect.

Success does not necessarily lead to undesired behaviour as Ludwig and Longenecker (1991:271) are careful to record:

We are not suggesting that all successful leaders fall prey to these negatives that are frequently associated with success, but rather want to make the case that success can bring with it some very negative emotional baggage.

However, it is useful to recognise the seven lessons from David’s experience (Ludwig and Longenecker, 1991:271) provide a useful framework for reflection:

Leaders are in their positions to focus on doing what is right for their organisation’s short-term and long-term success. This can’t happen if they aren’t where they are supposed to be, doing what they are supposed to be doing.

There will always be temptations that come in a variety of shapes and forms that will tempt leaders to make decisions they know they shouldn’t make. With success will come additional ethical trials.

Perpetrating an unethical act is a personal, conscious choice on the part of the leader that frequently places a greater emphasis on personal gratification rather than on the organisation’s needs.

It is difficult if not impossible to partake in unethical behaviour without implicating and/or involving others in the organisation

Attempts to cover-up unethical practices can have dire organisational consequences including innocent people getting hurt, power being abused, trust being violated, other individuals being corrupted, and the diversion of needed resources.

Not getting caught initially can produce self-delusion and increase the likelihood of future unethical behaviour.

Getting caught can destroy the leader, the organisation, innocent people, and everything the leader has spent his/her life working for.”

The important lessons for Ludwig and Longenecker (1992:272) is for leaders to recognise it could happen to them, and to be aware that:

Ethical leadership is simply part of good leadership and requires focus, the appropriate use of resources, trust, effective decision making, and provision of model behaviour that is worth following. Once it is lost it is difficult if not impossible to regain.

Strategy development can be a baffling process, and poor strategy is almost impossible to execute. Kaufman gives some useful hints about what to avoid and how to avoid them. Six ideas that can be used as tools to check how you are doing!

A focus on means rather than ends. Overcome this enemy by turning it on its head. Look at the WHAT and not the HOW.

The failure to recognise the three levels of results: micro (individual), macro (organisational) and mega (societal). Overcome this by understanding the distinctions among the three levels and linking them together.

Written objectives that give destination without supplying precise criteria for knowing when you have arrived. Overcome this enemy by preparing objectives that include measures of success.

Needs that are defines as gaps in resources or methods (means). Overcome this enemy by defining needs as gaps in results (ends), rather than rushing into premature solutions to ill-defined problems.

A mission that is practical, real world, do-able, and achievable, without being focused on a vision. Overcome this enemy by defining an ideal vision.

Reliance on plans that are comfortable and acceptable. Overcome this enemy by pushing out of comfort zones and looking at where you should be, not just where you feel comfortable.